Ann: Trading update - strong growth continues, page-5

Good announcement, but it means expenses must have been considerably higher than anticipated.

NEA began the FY with $23.3m cash and ended with $17m which means a drawdown of $6.3m.

But if Australian business has revenue (assume cash) of $23m, and cash expenses of $15m (assuming similar to last year); and US business has negligible revenue and forecast cash expenses of $8m; then cash position should be neutral.

This means there has been at least an extra $6.3m of cash expenses incurred. I presume most of this was incurred in the US and is quite considerable compared to the previous guidance of only $8m.